In fact, Christians and Muslims are actually cousins because both are the two branches of same ancestor Abraham. One branch was headed by Ishmael, which became Islam. The other branch headed by Isaac became Christians. Muslims recognize Jesus also as the precedent prophet to Mohammad. Mohammad was very much pained at the crucifixion of Jesus and hence resisted the concept of human incarnation, which can never be relished by the co-human beings due to ego and jealousy. This is not difference of policy but it is due to the heart felt pain by Mohammad about Jesus.

Hindus were always co-operative with every religion and you can find the peaceful co-existence of Christianity and Islam in India with out any violence. In fact, Hinduism itself is a mini model of Universality of Religions. There are several sub-religions in Hinduism like Shaivism, Vaishnavism, Shaktayism etc., which co-existed based on unity in diversity. In fact, Shankara co-related all the sub-religions and brought the unity based on single God called Brahman appearing in different forms like Shiva, Vishnu, Shakti etc.

The same process of unity of religions in one region was carried on by Mohammad, who established the concept of single God called as Allah. Of course, Shankara brought such unity by powerful logic and debate, where as Mohammad brought the same unity through powerful sword. The powerful knowledge is represented by sharp sword as said in Gita [Chchittvaa jnaanaasinaa .]. According to the circumstances and the mental level of the then existing people, knowledge or sword was used. In the time of Shankara, the quarrel was between scholars of various religions through arguments. In the time of Mohammad, the quarrel was between the heads of various religions through swords. The final result was one and the same.

Hindus say that Brahman is the creator, Muslims say
That Allah is creator, Christians say that the creator is
Jehovah, all say that the creation is this entire world.
If Hindus say that Brahman created India, and if
Muslims say that Allah created Arabian countries and
If Christians say that Jehovah created the western countries,
The problem is solved, there can be three Gods together,
Who have created the three parts of the earth separately.
But this is not so, each religion says that their God only
Created the entire world, unfortunately there is one world!
One world only! Come on, all of you sit together here
And give me the final conclusion after debate, otherwise,
The scientists are laughing on all of you! Shame to all!
They criticize that these religions do not have even
The basic logic, which is the fundamental common sense.
Because of you, the greatest God is also mocked by them
They say that the religions are rigid conservatisms!
Even a small boy is putting this question to all of you.
Stop all your discourses and first answer this question.
If you want to say that God created the entire world,
You have to accept that there is one God only always
And that His names are all the above three names.
We see in the world a single person having three names.
If there is one God, He only created this entire world.
All the human beings are invariably His children only.
No Father is partial to a single child and therefore
He must have preached the same knowledge to all
In different languages and in different methodologies
To different levels, this is Universal Spirituality.Universal-Spirituality

I thought the big base argument was that Muslims followed the line of Ishmael and said that he was the one Abraham was asked to sacrifice, not Isaac. I thought at that point the two religions really seperated, one following the line of Ishmael as the chosen line and one Isaac. If that is not true please let me know..

That is just one of Islams problems .
The sons of Issac became Yahuwdym.
The Sons of Ishmael became the Ishmaelites they were absorbed in to the Midianites and local tribes according to recordsJudges 8:22-24 ishmaelites - Google Search
Arabia was polpulated by the descendants of Cush and Shem , long before Abraham.

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